STOREBRAND, PKA AND PENSAM COMMIT TO NEW ENERGY TRANSITION FUND OF UP TO EUR 4 BILLION MANAGED BY AIP
Two of Denmark’s largest pension funds, PKA and PenSam, partner with Norwegian Storebrand, one of the Nordic region’s largest institutional investors, to establish a new energy transition fund of up to EUR 4 billion, managed by AIP.
At present, AIP manages investments of more than EUR 4 billion, mainly in the area of wind and solar energy, on behalf of the two Danish pension funds. With the establishment of the new fund – AIP Infrastructure II – PKA and PenSam increase their commitment to AIP Management by 50% compared to the previous fund. Norwegian Storebrand enters the collaboration both as a co-investor and a co-owner of AIP Management, thereby becoming the first international partner to join the AIP platform.
With the new commitments from PKA, PenSam and Storebrand, AIP Infrastructure II will become one of the largest climate and infrastructure funds raised in the Nordic region to date.
With this new collaboration, the three investors reinforce their common focus on responsible and sustainable investing. In addition to delivering profitable long-term returns for the members and customers, the ambition of the new fund is to make a clear contribution to reduce climate change and advance the green transition.
These commitments also contribute to achieving the goal set by the entire Danish pension sector together with the Danish Government, to invest DKK 350 billion in the green transition by 2030. In October, the Nordic Prime Ministers convened at the Nordic Council Session Week to discuss, inter alia, how this Danish initiative could be applied in the other Nordic countries.
“With a total commitment of up to EUR 4 billion in one of the largest climate and infrastructure funds ever in the Nordic region, we are raising our common ambitions for sustainable investments to a new level. The entry of a large and experienced investor such as Storebrand, allows us to further strengthen AIP Management. It also shows the success AIP has had since the platform was established in 2012 and that the model is unique not only in a Danish context but in an international light”, says Jon Jonsen, CEO of PKA.
Torsten Fels, CEO of PenSam, emphasizes the value of Nordic co-operation:
“With this co-operation across the Nordic borders, we show that we are stronger together. It is precisely this kind of collaboration that is the key to us, so that we on behalf of our members, can continue to push the green transition in the right direction.”, says Torsten Fels.
“This marks the start of our expansion into infrastructure as an investor and asset manager and it enables us to further contribute to the green transition in an excellent way. Our clients show great interest in these kinds of long-term investments with stable returns and positive impact. We therefore embrace this collaboration which gives our clients access to a large and diversified investment pool and look forward to growing this part of our business further allowing for our clients to co-invest with us”, says Jan Erik Saugestad, CEO of Storebrand Asset Management.
With three well-established investors on the platform, AIP will have the opportunity to further develop the company’s strategy to invest in large infrastructure projects that contribute to the energy transition, primarily in Europe and the USA.
“We are very pleased with the trust PKA and PenSam show the AIP team with the new and increased commitments to this fund. At the same time, we are proud to be able to attract such a significant partner as Storebrand to the AIP platform as a co-investor and co-owner. We look forward to continuing to execute on the successful investment strategy and deliver attractive risk-adjusted returns to current and future investors”, says Kasper Hansen, Managing Partner of AIP Management.
About AIP Management
AIP Management is a Danish investment company dedicated to investing into energy and infrastructure assets in Europe and the US. To date, AIP has invested more than EUR 4 billion, primarily in assets that contribute to the green transition, including in six European offshore wind farms, three onshore wind farms in Sweden and the US, as well as in four large solar power plants in California and Texas. The existing investments deliver sustainable energy to cover the equivalent of 2,2 million households’ consumption and they save more than 3 tonnes of CO2 on a yearly basis.
Storebrand Asset Management is a leading actor on the Nordic investment market and a frontrunner in sustainable investing. Storebrand has been on the forefront of sustainable investing since the mid 1990’s and were one of the first to sign the UNPRI. The Storebrand Group manages more than NOK 900 billion – all assets are managed according to strict sustainability criteria.
PKA is one of the main pension funds in Denmark, delivering lifelong security to a community of over 320.000 members, primarily from the social services and health care sector. The members are simultaneously PKA owners. PKA manages assets worth DKK 330 billion on behalf of their members, investing in solar and wind power, following the UN’s Sustainable Development Goals.
Pensam is a Danish labour market pension fund managing occupational schemes for its 430.000 members, who are employees that deliver essential services in the Danish welfare system in municipalities, regions and private companies.